Australia's NAB cuts executive salaries amidst probe

Total rewards for chief executive were cut by 11%.

Reuters reports that embattled National Australia Bank (NAB) has cut the remuneration package for its executive team after a powerful inquiry uncovered systemic evidence of widespread misconduct across the financial services sector.

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The bank reduced total rewards at current target levels for its chief executive by about 11% from 2017 in fiscal 2018 whilst rewards for its executive leadership team would be reduced by about 15% from 2017.

This comes on the heels of the departure of consumer banking executive Andrew Hagger after being in charge of a division that has been under intense scrutiny after allegedly charging fees to thousands of retirees for financial advice that never materialised. 

Also read: CFO Rob Jesudason leaves CBA 

NAB also flagged changes to performance-based incentives and said that the board could defer or forfeit any variable rewards for executives. 

Here’s more from Reuters: